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JRN Enterprises just announced that it plans to cut its dividend from $2.50 to $1.00 per share and use the extra funds to expand its

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JRN Enterprises just announced that it plans to cut its dividend from $2.50 to $1.00 per share and use the extra funds to expand its operations. Prior to this announcement, JRN's dividends were expected to grow at 6% per year and JRN's stock was trading at $24.50 per share. With the new expansion, JRN's dividends are expected to grow at 12% per year indefinitely. Assuming that JRN's risk is unchanged by the expansion, the value of a share of JRN after the announcement is closest to: O A. $59.47 O B. $9.80 O C. $24.50 OD. $23.79

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